Foreclosure in 60409>Question Details

Tyreese, Renter in 60409

Is it illegal for a landlord to rent a house thats already in foreclosure?

Asked by Tyreese, 60409 Sat Jun 19, 2010

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As long as the reprieve for the owner is still on the effect or if he or she is working on a negotiation to save the house from being taken over by the lending company, an owner can rent out a foreclosed home.

It is imperative that you do extensive research on the house you are trying to rent with the lending companies with the area if the house is about to be taken over or in the internet if the house is already on the auction block (because these are information that most seedy landlords will left out), because once this happens and you have already payed the rent in advance, the contract will be considered null and void and it is highly unlikely
you will get your money back
0 votes Thank Flag Link Sun Jul 4, 2010
In Forclosure means that the bank has taken back the house. If you you mean the owner is behind on payments then they may be in the process of being forclosed on. This will be started as soon as you are three months behind on payments, the home will start to show up on lists showing the owners are in default as soon as they are two months behind. I always insist the owner of the property show my rental clients the last mortgage statement, thatvwill show that the owner is current on all payments.

Good luck.
0 votes Thank Flag Link Mon Jun 21, 2010
Foreclosure and renting the house are two different issues. If they rent the property the owner may be able to get out of foreclosure. Typically when the first legal action is filed the tenants will be servered and depending on the lease there might be negotiations or conversation about the situation.

At least everyone will be up front and if your on a month to month lease and want to move on, give your 30 day notice a couple days before the end of the month for the next month(check the requirement in your state).

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Sun Jun 20, 2010
As long as the owner retains ownership the choice is theres. On the other hand, once the lender forecloses and takes control of the property, it's a completely different scenario.
0 votes Thank Flag Link Sun Jun 20, 2010
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